IURC News Release

For Immediate Release

May 9, 2000

CITY OF LAFAYETTE TO INCREASE WATER RATES

Today
the Indiana Utility Regulatory Commission approved a request by the City of
Lafayette to increase its rates and charges for water service.

In Cause No. 41845, the Commissioners approved an across the board
increase of 23-percent.This means that
a customer who uses 5,000 gallons of water a month and pays $8.80 will see
their bill rise to $10.82.The increase
is necessary to pay for capital improvements to the city’s water system.

The amount of the increase is the result of a settlement agreement with
the City of Lafayette and the Office of the Utility Consumer Counselor.Under the agreement, the city will perform a
hydraulic study to confirm that a new tower is the best option before it constructs
the planned new storage tower on CR 460 South.It will also submit a capital improvements reconciliation.If improvements cost less than expected, the
city agrees to use the money toward the completion of other projects to benefit
ratepayers.

The City of Lafayette provides water to approximately 23,000 customers
in and around the City of Lafayette in Tippecanoe County, Indiana.